Traders expect Bitcoin to surge this week, aiming for record highs as October ushers in a traditionally bullish period for cryptocurrencies. Key influences driving this rally include economic stimuli from China and anticipated policy changes by the Federal Reserve, which historically drive risk-on asset investments. Recent data suggest that significant market interest lies in Bitcoin exceeding $100,000 by year’s end.

Traders have anticipated Bitcoin’s price could reach unprecedented highs imminently, particularly as the fourth quarter is typically characterized by bullish trends in the cryptocurrency market. October marks the beginning of this historically favorable period for Bitcoin, with past data indicating an impressive 90% increase on average over the last decade during this time, as reported by analysts at CoinMarketCap. David Brickell, the head of international distribution at FRNT Financial, alongside Chris Mill, a former forex trader, expressed their optimistic outlook in their ‘Connecting the Dots’ newsletter, stating, “Expect fireworks. We anticipate we could hit record highs for Bitcoin this coming week.” This sentiment is echoed by numerous market participants, especially as options traded on Deribit highlight a significant interest in Bitcoin exceeding $100,000 by the December 27 expiry, underscoring expectations for a new all-time high in the near future. Two primary factors driving this rally appear to be developments in China and actions by the Federal Reserve. Recently, the Chinese government unveiled a series of strategies aimed at stimulating economic growth, which Brickell and Mill described as likely to “unleash a tsunami of liquidity.” Such measures include an ambitious plan to issue bonds totaling $284 billion and adjustments from the central bank to reduce reserve requirements, prompting a notable 5% increase in Bitcoin’s value, propelling it to $66,300, its highest since July before settling around $63,000. BitMEX co-founder Arthur Hayes remarked, “This is just the start; the real bazooka will come when [President Xi Jinping] instructs banks to issue more credit.” Furthermore, Federal Reserve Chairman Jerome Powell’s upcoming speech at the National Association of Business Economics is expected to be closely monitored by crypto investors. His insights and a release of new US employment data could provide hints regarding potential interest rate reductions that tend to foster an environment conducive to investing in riskier assets like cryptocurrencies. Following the Federal Reserve’s 0.5% interest cut mid-September, Bitcoin appreciated by nearly 10%. Brickell and Mill cautioned, “They say don’t fight the Fed. Also don’t fight China. Definitely don’t fight the Fed and China together.” Current projections from the CME Group’s FedWatch tool indicate a 60% likelihood of another 0.5% cut on November 7, with a 40% chance proposed for a lesser 0.25% cut, potentially sustaining the upward momentum in Bitcoin’s trajectory.

The cryptocurrency market frequently experiences significant fluctuations in price, often influenced by macroeconomic factors, regulatory changes, and geopolitical events. Bitcoin, as the leading digital currency, historically sees substantial increases in price towards the end of the year. This period of growth can be attributed to seasonal trends and heightened market activity as traders position themselves ahead of potential developments in global economic policies, particularly from influential players like China and the United States. The actions of regulatory bodies, such as the Federal Reserve, play a crucial role in shaping investor sentiment and risk appetite, making it essential for traders to stay informed about economic indicators and central banking decisions.

In summary, the cryptocurrency community is poised for significant movements in Bitcoin’s price, with traders anticipating all-time highs in the near future. Key drivers of this bullish sentiment include recent economic initiatives from China aimed at enhancing liquidity, alongside speculation regarding upcoming interest rate changes from the Federal Reserve. As historical trends suggest a promising fourth quarter for Bitcoin, market participants are closely monitoring these developments to seize potential investment opportunities.

Original Source: www.dlnews.com

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